| The opening of Shanghai Gold Exchange on October30th2002is a sign that representthe first step China has made on its gold transaction binary market system. And China hasformed the common development between physical gold market and the derivatives marketsince then. After years ofdevelopment, China’s domestic gold market plays an increasinglyimportant role in its national economy as well as a critical part of international gold marketby its efforts to get in line with the global market.China’s gold production has achieved a qualitative leap. When new china wasfounded in1949, the gold production was less than4tons yearly. In the year of2007,China’s annual figure of gold production exceeded South Africa and became the firstproducer in the world. Until2013, China’s gold output reached428tons whichenables herto be the world largest gold miner for the7th years. On the consumption side of gold,China reached1176tons and overtakes India as world’s biggest gold consumer in2013.The chain of production, processing and consumption in China’s gold domestic industryhas not only become a crucial part of national economy, but also an important pillar of theworld gold industry.The great development of China’s gold market and gold industry made it moreimportant to handle properly the relationship between the two. The interaction and mutualcoordination between the gold market and gold industry provides a sound and secureinvestment vehicle, complete market system, healthy development of national economy aswell as a better gold reserve strategy and a promotion on the internationalization of theChinese currency.In view of the above situation, starting with the gold price analysis, this paper aims toelaborate how gold price is regulated by the market mechanism and the impacts of goldprice to the gold industry chain. The paper has also discussed the interaction between thegold market and gold industry, and puts forwards corresponding measures and suggestionsfor coordinating their development as a conclusion. |
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